Two alternative SME lenders are joining forces. Strategic Funding Source announced Thursday (Jan. 5) that it is integrating the solutions of Capify's own small business financing operation — a move that, while not officially considered a merger, will see a merging of the two companies in some ways.
Both companies have been in the non-bank SME financing industry for more than 10 years, the firms said. Integrating Capify's solution will help Strategic Funding expand across the U.S. and will enable Capify SME users to access financing from Strategic Funding.
According to the announcement, “many” of Capify's existing staff based in New York will be absorbed into the Strategic Funding company.
“We are very pleased to have put together a deal with Strategic Funding that will provide our customers with a future source of important capital,” Capify Founder and CEO David Goldin said in a statement. “As a company that shares our values of providing simple, transparent and responsible access to capital for small and mid-sized businesses, it was a logical transition.”
“It is rare that two companies in the same industry can come together and craft a synergistic deal that serves the best interests and strategies of each, but this integration does just that,” said Strategic Funding CEO Andy Reiser. “We have been friends of David and Capify for many years and have collaborated on and co-invested in the financing of many businesses over the years. We share the same focus on technology and quality underwriting that our customers, partners and the financial industry have come to expect from us. This transaction only strengthens the relationship between the two organizations.”
The companies did not say whether their partnership is a step towards a potential merger or acquisition.